What is the advantage of diversifying sources of supply?
A) providing insurance against temporary disruption in supply
B) increasing savings through quantity discounts
C) facilitating prompt treatment of rush orders
D) enabling a firm to get financial aid from suppliers during times of financial stress

Question

Quizplus · Accepted Answer

Diversifying sources of supply provides insurance against temporary disruption in supply. If a firm relies on only one supplier and that supplier experiences supply issues or goes out of business, the firm's operations can be seriously impacted. By diversifying suppliers, a firm can mitigate the risk of a disruption in supply.

What Is the Advantage of Diversifying Sources of Supply